Financial Daily from THE HINDU group of publications
Thursday, Mar 28, 2002
WEDNESDAY'S trading witnessed narrow movement. Bulls were successful in restricting the bears run. Neither the bulls nor the bears could gain from the day's trading. The market sentiment reading stands mildly in favour of the bears. In the normal course of trading on Thursday, the prevailing sentiment is likely to continue. Bull domination is likely to change the sentiment reading in its favour.
Nifty futures recommendation: March contract moved within a close band of 9 points. This had no effect on the recommended levels. March contract closed with a loss of one point with respect to Tuesday's close. Thursday being the expiry day of the March contract, the short position should be held with the stop loss placed at 1137.45. If the stop loss is not hit, allow it to expire.
Entry on the long side is given for the April contract. However, this is placed quite far away from its current level.
Stock futures recommendation: The composition of the top-10 tradable counters remained intact. The ranking of the list had a minor change. Digital moved to the fourth position followed by BPCL.
Bull domination on Thursday is likely to be a threat to the following downtrend counters Ranbaxy, Sterlite Optical and Tata Engg. On the contrary, the uptrend in BPCL and Hindustan Petro is likely to be under threat. Bulls are likely to have opportunity in Ranbaxy and Reliance Industries. On the other hand, selling opportunities are likely to exist in Digital, Hindustan Petro and Reliance Industries.
Buying in Ranbaxy is likely to be the best bet for Thursday's trading. The counter is in the downtrend. Its exit and bearish trigger levels are placed closer to its last traded price. Fresh entry levels for all the counters are given for April contract and as such fresh orders should be placed for April contract.
Cash segment: There were no new entries or exits to the top-10 tradable counters in this segment. The ranking remained the same with no major changes.
The uptrend in Hindustan Petro and Infosys is likely to be under threat from the bears. On the other hand, the downtrend in Mastek, Polaris Soft and VisualSoft is likely to be under threat. Buying opportunities are likely to exist in Polaris Soft, Reliance Industries and Zee Tele. Selling opportunities are likely to exist in Digital, Hindustan Petro, Infosys and Reliance Industries.
The best among them is likely to be the buying in Zee Tele. Its bullish trigger level is placed quite closer to its closing price. Bull move on Thursday is likely to initiate a fresh uptrend in the counter.
(Note: All price levels refer to the absolute value of the shares traded on the NSE. There is risk of loss in trading.)
The author is a Chennai-based technical analyst and fund management consultant.
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